London House Price Growth ‘Set For Weak Four Years’

The slow pace of the London property market is set to continue for another four years, according to a new forecast.

According to predictions by Hamptons, the typical home in the capital will only cost 1.5 per cent more by the end of this year than at the start.

The report went on to forecast a one per cent rise in 2022, 1.5 per cent in 2023 and then a slight acceleration to three per cent in 2024. Only in the last of these years will the London growth rate be higher than the national average price rise (2.5 per cent). That is when international buyers, students and tourists are expected to start returning to London in increased numbers.

Hamptons based its predictions on the assumption that the market will cool towards the back end of this year following the end of the stamp duty holiday, but will pick up again in 2022.

Although this will close the gap between London and the rest, head of research at Hamptons Aneisha Beveridge said that does not tell the whole story.

Despite the current trend, she observed that “the gap between house prices in the capital and the other regions is likely to be wider than that seen at the end of the previous cycle in 2007”.

For this reason, it may be wise to seek the expertise of London property experts, who can identify the areas and property types likely to perform best in various circumstances, be it bargains or high-end property, the best performers in the short term or the most reliable long-term prospects.

According to a report in the Metro News, Tooting in south London is emerging as a new hotspot.

Featuring three bed homes for £700,000 or first time buyer properties as low as £300,000, the area’s new housing developments include the Springfield village and its transport links to central London include Thameslink and the Northern line of the Tube.